EX-20.1 2 0002.txt EXHIBIT 20.1 EXHIBIT 20.1 Subsidiary Guarantees of Debt The Company's Senior Notes, Senior Subordinated Notes and Senior Credit Facility agreements are guaranteed on a full, unconditional and joint and several basis by certain of the Company's wholly owned domestic subsidiaries. The following is condensed, consolidating financial information for the Company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of October 1, 2000, and December 31, 1999, and for the nine-month periods ended October 1, 2000, and October 3, 1999 (in millions of dollars). The presentation of certain prior-year amounts has been changed in order to conform to the current-year presentation. Separate financial statements for the guarantor subsidiaries and the non-guarantor subsidiaries are not presented because management has determined that such financial statements would not be material to investors.
CONSOLIDATED BALANCE SHEET ---------------------------------------------------------------------------------------- October 1, 2000 ---------------------------------------------------------------------------------------- Ball Guarantor Non-Guarantor Eliminating Consolidated Corporation Subsidiaries Subsidiaries Adjustments Total ---------------- ---------------- ---------------- ---------------- ---------------- ASSETS Current assets Cash and temporary investments $ 5.4 $ 0.4 $ 21.6 $ - $ 27.4 Accounts receivable, net 0.4 314.1 79.4 - 393.9 Inventories, net - 411.9 116.3 - 528.2 Deferred income tax benefits and prepaid expenses 167.1 122.5 10.5 (218.0) 82.1 ---------------- ---------------- ---------------- ---------------- ---------------- Total current assets 172.9 848.9 227.8 (218.0) 1,031.6 ---------------- ---------------- ---------------- ---------------- ---------------- Property, plant and equipment, at cost 25.7 1,549.3 345.4 - 1,920.4 Accumulated depreciation (14.7) (767.8) (114.0) - (896.5) ---------------- ---------------- ---------------- ---------------- ---------------- 11.0 781.5 231.4 - 1,023.9 ---------------- ---------------- ---------------- ---------------- ---------------- Investments in subsidiaries 1,447.0 339.8 9.8 (1,796.6) - Investments in affiliates 7.7 1.9 56.5 - 66.1 Goodwill, net - 342.7 107.3 - 450.0 Other assets 80.8 37.0 23.4 - 141.2 ---------------- ---------------- ---------------- ---------------- ---------------- Total Assets $ 1,719.4 $ 2,351.8 $ 656.2 $ (2,014.6) $ 2,712.8 ================ ================ ================ ================ ================ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term debt and current portion of long-term debt $ 58.5 $ - $ 89.3 $ - $ 147.8 Accounts payable 15.5 254.2 77.0 - 346.7 Salaries and wages 6.1 89.0 7.5 - 102.6 Other current liabilities 19.4 245.0 40.1 (218.0) 86.5 ---------------- ---------------- ---------------- ---------------- ---------------- Total current liabilities 99.5 588.2 213.9 (218.0) 683.6 Long-term debt 1,054.4 10.1 - - 1,064.5 Intercompany borrowings (222.9) 164.1 58.8 - - Employee benefit obligations, deferred income taxes and other 102.7 106.4 55.8 - 264.9 ---------------- ---------------- ---------------- ---------------- ---------------- Total liabilities 1,033.7 868.8 328.5 (218.0) 2,013.0 ---------------- ---------------- ---------------- ---------------- ---------------- Contingencies Minority interests - - 14.1 - 14.1 ---------------- ---------------- ---------------- ---------------- ---------------- Shareholders' Equity: Series B ESOP Convertible Preferred Stock 53.4 - - - 53.4 Convertible preferred stock - - 179.6 (179.6) - Unearned compensation - ESOP (15.7) - - - (15.7) ---------------- ---------------- ---------------- ---------------- ---------------- Preferred shareholders' equity 37.7 - 179.6 (179.6) 37.7 ---------------- ---------------- ---------------- ---------------- ---------------- Common stock 439.1 1,155.9 237.5 (1,393.4) 439.1 Retained earnings (deficit) 508.1 329.2 (79.1) (250.1) 508.1 Accumulated other comprehensive loss (29.5) (2.1) (24.4) 26.5 (29.5) Treasury stock, at cost (269.7) - - - (269.7) ---------------- ---------------- ---------------- ---------------- ---------------- Common shareholders' equity 648.0 1,483.0 134.0 (1,617.0) 648.0 ---------------- ---------------- ---------------- ---------------- ---------------- Total shareholders' equity 685.7 1,483.0 313.6 (1,796.6) 685.7 ---------------- ---------------- ---------------- ---------------- ---------------- Total Liabilities and Shareholders' Equity $ 1,719.4 $ 2,351.8 $ 656.2 $ (2,014.6) $ 2,712.8 ================ ================ ================ ================ ================
CONSOLIDATED BALANCE SHEET ---------------------------------------------------------------------------------------- December 31, 1999 ---------------------------------------------------------------------------------------- Ball Guarantor Non-Guarantor Eliminating Consolidated Corporation Subsidiaries Subsidiaries Adjustments Total ---------------- ---------------- ---------------- ---------------- ---------------- ASSETS Current assets Cash and temporary investments $ 13.6 $ 0.2 $ 22.0 $ - $ 35.8 Accounts receivable, net 4.1 151.7 64.4 - 220.2 Inventories, net - 452.1 113.8 - 565.9 Deferred income tax benefits and prepaid expenses 129.2 94.8 13.0 (163.1) 73.9 ---------------- ---------------- ---------------- ---------------- ---------------- Total current assets 146.9 698.8 213.2 (163.1) 895.8 ---------------- ---------------- ---------------- ---------------- ---------------- Property, plant and equipment, at cost 25.4 1,525.5 383.7 - 1,934.6 Accumulated depreciation (13.5) (697.5) (102.4) - (813.4) ---------------- ---------------- ---------------- ---------------- ---------------- 11.9 828.0 281.3 - 1,121.2 ---------------- ---------------- ---------------- ---------------- ---------------- Investments in subsidiaries 1,412.4 337.7 10.3 (1,760.4) - Investments in affiliates 9.0 2.3 70.0 - 81.3 Goodwill, net - 365.2 117.7 - 482.9 Other assets 88.9 37.5 24.5 - 150.9 ---------------- ---------------- ---------------- ---------------- ---------------- Total Assets $ 1,669.1 $ 2,269.5 $ 717.0 $ (1,923.5) $ 2,732.1 ================ ================ ================ ================ ================ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term debt and current portion of long-term debt $ 46.8 $ - $ 57.2 $ - $ 104.0 Accounts payable 4.5 285.3 55.7 - 345.5 Salaries and wages 7.3 99.1 8.3 - 114.7 Other current liabilities 35.0 193.3 40.7 (163.1) 105.9 ---------------- ---------------- ---------------- ---------------- ---------------- Total current liabilities 93.6 577.7 161.9 (163.1) 670.1 Long-term debt 1,068.7 24.0 - - 1,092.7 Intercompany borrowings (302.6) 199.1 103.5 - - Employee benefit obligations, deferred income taxes and other 118.5 83.1 57.1 - 258.7 ---------------- ---------------- ---------------- ---------------- ---------------- Total liabilities 978.2 883.9 322.5 (163.1) 2,021.5 ---------------- ---------------- ---------------- ---------------- ---------------- Contingencies Minority interests - - 19.7 - 19.7 ---------------- ---------------- ---------------- ---------------- ---------------- Shareholders' Equity: Series B ESOP Convertible Preferred Stock 56.2 - - - 56.2 Convertible preferred stock - - 179.6 (179.6) - Unearned compensation - ESOP (20.5) - - - (20.5) ---------------- ---------------- ---------------- ---------------- ---------------- Preferred shareholders' equity 35.7 - 179.6 (179.6) 35.7 ---------------- ---------------- ---------------- ---------------- ---------------- Common stock 413.0 1,155.7 240.9 (1,396.6) 413.0 Retained earnings (deficit) 481.2 231.2 (23.7) (207.5) 481.2 Accumulated other comprehensive loss (26.7) (1.3) (22.0) 23.3 (26.7) Treasury stock, at cost (212.3) - - - (212.3) ---------------- ---------------- ---------------- ---------------- ---------------- Common shareholders' equity 655.2 1,385.6 195.2 (1,580.8) 655.2 ---------------- ---------------- ---------------- ---------------- ---------------- Total shareholders' equity 690.9 1,385.6 374.8 (1,760.4) 690.9 ---------------- ---------------- ---------------- ---------------- ---------------- Total Liabilities and Shareholders' Equity $ 1,669.1 $ 2,269.5 $ 717.0 $ (1,923.5) $ 2,732.1 ================ ================ ================ ================ ================
CONSOLIDATED STATEMENT OF EARNINGS ---------------------------------------------------------------------------------------- For the Nine Months Ended October 1, 2000 ---------------------------------------------------------------------------------------- Ball Guarantor Non-Guarantor Eliminating Consolidated Corporation Subsidiaries Subsidiaries Adjustments Total ---------------- ---------------- ---------------- ---------------- ---------------- Net sales $ - $ 2,581.8 $ 354.5 $ (196.2) $ 2,740.1 Costs and expenses Cost of sales (excluding depreciation and amortization) - 2,176.5 296.4 (196.2) 2,276.7 Depreciation and amortization 1.6 95.1 21.9 - 118.6 Business consolidation costs and other 2.3 15.1 59.0 - 76.4 Selling and administrative expenses 7.3 74.6 21.4 - 103.3 Receivable securitization fees and product development 0.1 10.7 0.1 - 10.9 Interest expense 59.6 8.1 3.9 - 71.6 Equity in net results of subsidiaries (49.4) - - 49.4 - Corporate allocations (42.4) 42.4 - - - ---------------- ---------------- ---------------- ---------------- ---------------- (20.9) 2,422.5 402.7 (146.8) 2,657.5 ---------------- ---------------- ---------------- ---------------- ---------------- Earnings (loss) before taxes 20.9 159.3 (48.2) (49.4) 82.6 Provision for taxes 28.5 (61.0) 0.8 - (31.7) Minority interests - - 2.1 - 2.1 Equity in net results of affiliates (0.3) (0.3) (3.3) - (3.9) ---------------- ---------------- ---------------- ---------------- ---------------- Net earnings (loss) 49.1 98.0 (48.6) (49.4) 49.1 Preferred dividends, net of tax (1.9) - - - (1.9) ---------------- ---------------- ---------------- ---------------- ---------------- Earnings (loss) attributable to common shareholders $ 47.2 $ 98.0 $ (48.6) $ (49.4) $ 47.2 ================ ================ ================ ================ ================
CONSOLIDATED STATEMENT OF EARNINGS ---------------------------------------------------------------------------------------- For the Nine Months Ended October 3, 1999 ---------------------------------------------------------------------------------------- Ball Guarantor Non-Guarantor Eliminating Consolidated Corporation Subsidiaries Subsidiaries Adjustments Total ---------------- ---------------- ---------------- ---------------- ---------------- Net sales $ - $ 2,630.6 $ 359.6 $ (199.3) $ 2,790.9 Costs and expenses Cost of sales (excluding depreciation and amortization) - 2,237.6 296.0 (199.3) 2,334.3 Depreciation and amortization 2.4 97.3 22.3 - 122.0 Selling and administrative expenses 13.8 70.4 20.2 - 104.4 Receivable securitization fees and product development - 9.9 0.1 - 10.0 Interest expense 43.1 31.5 7.4 - 82.0 Equity in net results of subsidiaries (95.8) - - 95.8 - Corporate allocations (41.5) 41.5 - - - ---------------- ---------------- ---------------- ---------------- ---------------- (78.0) 2,488.2 346.0 (103.5) 2,652.7 ---------------- ---------------- ---------------- ---------------- ---------------- Earnings (loss) before taxes 78.0 142.4 13.6 (95.8) 138.2 Provision for taxes 6.5 (52.6) (6.3) - (52.4) Minority interests - - (1.3) - (1.3) Equity in net results of affiliates 0.2 - - - 0.2 ---------------- ---------------- ---------------- ---------------- ---------------- Net earnings (loss) 84.7 89.8 6.0 (95.8) 84.7 Preferred dividends, net of tax (2.0) - - - (2.0) ---------------- ---------------- ---------------- ---------------- ---------------- Earnings (loss) attributable to common shareholders $ 82.7 $ 89.8 $ 6.0 $ (95.8) $ 82.7 ================ ================ ================ ================ ================
CONSOLIDATED STATEMENT OF CASH FLOWS ---------------------------------------------------------------------------------------- For the Nine Months Ended October 1, 2000 ---------------------------------------------------------------------------------------- Ball Guarantor Non-Guarantor Eliminating Consolidated Corporation Subsidiaries Subsidiaries Adjustments Total ---------------- ---------------- ---------------- ---------------- ---------------- Cash Flows from Operating Activities Net earnings (loss) $ 49.1 $ 98.0 $ (48.6) $ (49.4) $ 49.1 Noncash charges to net earnings: Depreciation and amortization 1.6 95.1 21.9 - 118.6 Business consolidation costs 2.3 22.1 56.9 - 81.3 Deferred income taxes (23.3) 24.6 (5.6) - (4.3) Equity in net results of subsidiaries (49.4) - - 49.4 - Other, net 6.6 (22.2) 1.0 - (14.6) Changes in working capital components (29.9) (141.4) (9.9) - (181.2) ---------------- ---------------- ---------------- ---------------- ---------------- Net cash provided by (used in) operating activities (43.0) 76.2 15.7 - 48.9 ---------------- ---------------- ---------------- ---------------- ---------------- Cash Flows from Investing Activities Additions to property, plant and equipment (0.7) (59.9) (9.2) - (69.8) Investments in and advances to affiliates, net 79.4 (36.6) (42.8) - - Incentive loan receipts and other, net 3.6 34.4 3.9 - 41.9 ---------------- ---------------- ---------------- ---------------- ---------------- Net cash provided by (used in) investing activities 82.3 (62.1) (48.1) - (27.9) ---------------- ---------------- ---------------- ---------------- ---------------- Cash Flows from Financing Activities Long-term borrowings 30.0 - - - 30.0 Repayments of long-term borrowings (27.8) (13.9) - - (41.7) Change in short-term borrowings - - 33.1 - 33.1 Common and preferred dividends (15.4) - - - (15.4) Proceeds from issuance of common stock under various employee and shareholder plans 25.9 - - - 25.9 Acquisitions of treasury stock (57.4) - - - (57.4) Other, net (2.8) - (1.1) - (3.9) ---------------- ---------------- ---------------- ---------------- ---------------- Net cash provided by (used in) financing activities (47.5) (13.9) 32.0 - (29.4) ---------------- ---------------- ---------------- ---------------- ---------------- Net Change in Cash and Temporary Investments (8.2) 0.2 (0.4) - (8.4) Cash and Temporary Investments - Beginning of Period 13.6 0.2 22.0 - 35.8 ---------------- ---------------- ---------------- ---------------- ---------------- Cash and Temporary Investments - End of Period $ 5.4 $ 0.4 $ 21.6 $ - $ 27.4 ================ ================ ================ ================ ================
CONSOLIDATED STATEMENT OF CASH FLOWS ---------------------------------------------------------------------------------------- For the Nine Months Ended October 3, 1999 ---------------------------------------------------------------------------------------- Ball Guarantor Non-Guarantor Eliminating Consolidated Corporation Subsidiaries Subsidiaries Adjustments Total ---------------- ---------------- ---------------- ---------------- ---------------- Cash Flows from Operating Activities Net earnings (loss) $ 84.7 $ 89.8 $ 6.0 $ (95.8) $ 84.7 Noncash charges to net earnings: Depreciation and amortization 2.4 97.2 22.4 - 122.0 Deferred income taxes 1.7 26.6 2.6 30.9 Equity in net results of subsidiaries (95.8) - - 95.8 - Other, net 19.2 (10.9) 0.3 - 8.6 Changes in working capital components (15.2) (137.0) 21.7 - (130.5) ---------------- ---------------- ---------------- ---------------- ---------------- Net cash provided by (used in) operating activities (3.0) 65.7 53.0 - 115.7 ---------------- ---------------- ---------------- ---------------- ---------------- Cash Flows from Investing Activities Additions to property, plant and equipment (0.5) (54.1) (14.5) - (69.1) Investments in and advances to affiliates, net (2.9) (9.4) 12.3 - - Other, net 2.7 (1.7) 2.7 - 3.7 ---------------- ---------------- ---------------- ---------------- ---------------- Net cash provided by (used in) investing activities (0.7) (65.2) 0.5 - (65.4) ---------------- ---------------- ---------------- ---------------- ---------------- Cash Flows from Financing Activities Long-term borrowings 50.0 - - - 50.0 Repayments of long-term borrowings (16.5) (0.1) (37.8) (54.4) Change in short-term borrowings 1.5 - (15.1) - (13.6) Common and preferred dividends (15.9) - - - (15.9) Net proceeds from issuance of common stock under various employee and shareholder plans 30.8 - - - 30.8 Acquisitions of treasury stock (48.1) - - - (48.1) Other, net (2.1) (0.5) 0.1 - (2.5) ---------------- ---------------- ---------------- ---------------- ---------------- Net cash used in financing activities (0.3) (0.6) (52.8) - (53.7) ---------------- ---------------- ---------------- ---------------- ---------------- Net Change in Cash and Temporary Investments (4.0) (0.1) 0.7 - (3.4) Cash and Temporary Investments - Beginning of Period 11.6 0.5 21.9 - 34.0 ---------------- ---------------- ---------------- ---------------- ---------------- Cash and Temporary Investments - End of Period $ 7.6 $ 0.4 $ 22.6 $ - $ 30.6 ================ ================ ================ ================ ================